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A significant Ethereum (ETH) transaction caught the attention of crypto analysts over the weekend. On-chain data revealed a single entity withdrew over $206 million worth of ETH from Bitfinex. What is this whale up to? Lookonchain suggests the whale is likely Abraxas Capital Management. it is a famous UK-based investment firm that specializes in crypto assets. Abraxas has been active in the crypto space since 2017. As of April 2024, its three digital asset funds manage over $2 billion. The whale's actions didn't stop at withdrawal. There was a serious game to be carried out, that someone must have planned meticulously. So at first, the ETH was deposited into Spark, a DeFi infrastructure provider. This move appears strategic. The deposited ETH serves as collateral for the stablecoin DAI. No wonder, our whale then borrowed 101 million DAI from Spark. But the next move was kind of surprising, if not to say unpredictable. This borrowed DAI was then swapped for 101 million USDC. That's a second most popular stablecoin in the world, in case you forgot. The final step saw the USDC deposited into Binance, the world's leading crypto exchange. This series of transactions demonstrates complex maneuvering within the crypto ecosystem, basically, our whale definitely knew what to do. Spark offers multiple DeFi products. These include SparkLend, a DAI-centric money market protocol, and sDAI, a yield-bearing stablecoin. At the time of writing, ETH trades at $3,442. While up 3% over seven days, it's down 10% month-on-month. ETH remains 29% below its November 2021 all-time high of $4,878. USDC and DAI rank as the second and third-largest stablecoins by market cap. Both aim to maintain a 1:1 peg with the US dollar.

Circle has obtained registration as an electronic money institution in France. This grants the firm a crucial license to issue stablecoins under the European Union's new stringent crypto regulations. And thus Circle's USDC might finally get an edge over Tether's USDT. The approval comes from France's banking regulator, ACPR. Circle is now the first global stablecoin issuer to comply with the EU's Markets in Crypto-Assets (MiCA) framework, which many crypto fans have already dubbed 'demonic', 'unhealthy' and even 'orwellian'. The license enables Circle to issue its USDC and EURC tokens in the EU. These will now comply with MiCA's stablecoin rules. Circle is also launching its Circle Mint service in France. Jeremy Allaire, Circle's CEO, called the approval "a huge milestone". He emphasized the company's commitment to regulatory compliance since its founding and now this long-term investment has paid off. Stablecoins are cryptocurrencies pegged to traditional assets. They offer stability in the volatile crypto market. Traders use them to move quickly between cryptocurrencies. The EU passed MiCA last year. It's the world's first comprehensive crypto law. Also deemed as one of the harshest ones. MiCA outlines investor protection rules and safeguards against market manipulation. Stablecoin provisions under MiCA were approved last week. These rules are particularly strict. They limit trading volumes for certain stablecoins, especially those denominated in US dollars. Circle's French registration allows it to offer services throughout the EU. This includes minting and redeeming USDC via Circle Mint. MiCA permits crypto businesses to "passport" their services across the bloc. The remaining MiCA obligations will apply from December 30, 2024, but crypto companies will have until July 2026 to achieve full compliance. Two years isn't a very long period for the world of finance, to say the least. USDC is the second-largest stablecoin globally. It has $32.4 billion in circulation. Tether's USDT remains the largest, with $112.7 billion in circulation. Yet, Tether hasn't done crucial steps to comply with MiCA demands, and we will have to wait and see how it ends for the leading stablecoin. As well as for its competitors.

The minting of USDT, the world's largest stablecoin by market capitalization, has dramatically declined on Ethereum and Tron networks. Over the past six months, issuance has fallen from $7 billion to just $1 billion. Sound like a catastrophy, yet it isn't. This sharp decrease coincides with a broader market contraction in June. It indicates reduced trading activity and waning demand for cryptocurrencies during this period. The question is, however, how serious this might be in a long-term perspective. An analyst on X highlighted this trend. And came up with a possible explanation, saying that the decline in minting activity reflects diminished blockchain utilization on both networks. Tron remains a preferred network for USDT minting despite Ethereum's dominance. It offers superior scalability and lower transaction costs. Ethereum has made strides in scaling. The emergence of layer-2 platforms like Base and Arbitrum has bolstered its ecosystem. Recent upgrades, such as Dencun, aim to reduce transaction costs on these layer-2 solutions. The drop in USDT minting suggests a broader decline in crypto demand. Historically, large-scale USDT minting has correlated with rising Bitcoin and crypto prices. Until minting activity resumes on these leading smart contract platforms, Bitcoin and major altcoin prices may remain suppressed. Tether, USDT's issuer, recently partnered with Uquid. The collaboration aims to modernize payments for the Philippines' Social Security System using the TON blockchain. Simultaneously, Tether announced the cessation of USDT minting on Algorand and EOS networks. Redemptions will continue for another year. USDT can still be minted on over ten platforms. The total USDT minted to date exceeds whopping $110 billion. Who says cryptocurrency isn't conquering the world right now?

The Philippines has adopted Tether's USDT for social security contributions. This move marks a significant shift in government payment systems. In some ways, this innovation might be considered as significant as El Salvador's Bitcoin adoption in 2021. The Social Security System (SSS) in the Philippines now includes USDT its payment options. Tether's USDT is the world's largest stablecoin by market capitalization. The SSS is a state-run social insurance program. It covers employees in the official, informal, and private sectors. The program provides support during difficult times. It manages two key initiatives: social security and employee compensation. Tether has partnered with Uquid, a Web3 shopping and infrastructure firm. This collaboration enables Filipino citizens to pay SSS contributions using USDT on The Open Network blockchain. Uquid emphasized the potential of stablecoins. "This partnership highlights how stablecoins like USDT and crypto can simplify our daily lives," a company spokesperson said. Uquid is a decentralized commerce infrastructure platform. It uses blockchain technology to offer crypto payment options. The company has built a user base of over 260 million in eight years. It supports merchants and customers across various markets. Tran Hung, CEO of Uquid, commented on the partnership. "This marks a significant milestone in bridging digital currencies and daily transactions," he said. "It makes crypto micropayment applicable." Stablecoin demand is rising globally. Just to quickly remind you, PayPal has launched its native stablecoin, PayPal USD, and Ripple plans to introduce its own stablecoin in early 2025. Stablecoins are increasingly used for cross-border payments at an institutional level. They have evolved from exchange on-ramps to key liquidity providers in various markets. And maybe Satoshi wasn't expecting this, but stablecoins might eventually become a more powerful force that Bitcoin itself in terms of making crypto a driving force in the world of finance.

Tether has announced the discontinuation of USDT minting on Eos and Algorand blockchains. But don't panic, Tether will continue redemptions for 12 months. The change takes effect from June 24. Tether claims, the move is supposed to balance its ecosystem. "We carefully evaluate the network's security architecture," Tether stated. Tether emphasized a commitment to user experience. "This transition will be executed meticulously and with minimal disruption," the firm assured. Eos and Algorand are among 17 blockchains supporting Tether transactions. Others include Ethereum, Tron, and Solana. Tron blockchain is the most efficient and popular for USDT stablecoin. In the end of June Tron-based USDT surpassed Visa in terms of daily transactions for the first time in history. The data speaks for itself. As of June 22, Eos-based Tether circulation stood at $75.5 million. This represents 0.06% of total USDT supply. Algorand-based USDT circulation was lower at $17 million. This accounts for 0.01% of total USDT supply. This is not Tether's first blockchain abandonment. The company has been selective in its network choices. But it is not all about cutting. Just recently Tether has expanded to new networks. It launched USDT on TON in April 2024. TON-based USDT has reached $500 million in circulation. This represents 0.44% of total USDT supply.